Don’t shy away from being a coach and educator to your clients. Adding in this extra element can help set you apart from the competition
and deepen your relationship with them.
If you aren’t already educating your clients, here are five reasons why you should start doing it right away.
#1. You’ll influence their behaviors and decisions
By educating your clients early on, you will help to build trust so that, down the line, they are more likely to stick with you and stick to their plan.
Get clients to understand how financial concepts relate to their lives so they can see the impact of their decisions. Rather than talking about abstract terms use real-life examples. Tell them how you recently helped a couple achieve a comfortable retirement, free of financial stress.
Get clients onboard with why they need to save for their retirement by helping them envision their dream future
in closeup detail. This will inspire them to put off buying that new car or kitchen so that they can save enough to achieve this goal.
Give them the knowledge they need to prevent them from making bad financial decisions when the market takes a downturn by explaining the nature of volatility.
#2. Clients will fully understand your value
Take the time to articulate your value i.e. exactly what it is you do for your clients, so they see you as someone who does far more than simply manages their assets. Communicate that you are there to take away their financial problems and ensure they achieve a future free of financial stress.
By educating clients regarding your value you’re making yourself irreplaceable.
#3. You will validate yourself in the eyes of your clients
By offering educational seminars, workshops, webinars or lunches you are reinforcing the fact that you are a person of standing in the community; someone people can turn to for advice.
By seeing you in this light i.e. that you are reliable and knowledgeable, you’re adding an extra layer to your relationship with clients. They will feel validated in that they chose you to handle their finances.
Organize events based specifically around your clients’ needs, demographics and finances. If you serve pre-retirees, make sure topics are relevant to this group (rather than to young couples saving for their children’s education). Your seminar is your opportunity to inform rather than to sell – however, it’s also a useful way to touch base with new prospects who are interested in what you have to say.
#4. Educating clients is a great way to keep in touch
Don’t overlook reaching out to clients on social media. Regularly posting useful ideas and information is a great way to keep in touch with clients. A regular newsletter on market conditions or an email with tips on investing is great way to keep communication channels open.
#5. You’ll become more referable
Your commitment to ensuring people get objective financial advice carries a lot of weight when it comes to getting people to trust you, like you and feel you’re an authentic human being.
By taking the time to educate them, clients will also be more likely to refer you to their friends and colleagues. Using your expertise to help people understand the need to invest will demonstrate your altruism – that you’re not there to simply make money. This will make clients feel more comfortable about referring you.
By taking the time to incorporate education into your relationship with clients you’re turning that relationship from a purely transactional one into a two-way street. Aim to help them understand the value of investing
and how you play an essential part in the process. In doing so, you will increase not only client loyalty but your referability.
And, as an added bonus, once you have taken the time to educate clients, they’ll be more committed to the investment process – and therefore be more enjoyable to work with.
Related: 4 Key Strategies to Elevate Your Financial Advisory Practice